Faculty of Business, Economics & Accounting

Department of Business Studies

HELP Bachelor of Business (Hons)

FINAL ASSIGNMENT

Subject: ITC101

INFORMATION TECHNOLOGY FOR BUSINESS

Subject Lecturer: MS. DAO TRAN HOANG CHAU

Subject Convener: DR HEMALATA ALAGAN

 Student information
Grade/ Marks
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Name ID

PHAM VU HOANG LAM E2100233

Module/Subject Information Office

Acknowledgement
Module/Subject Code ITC101

Information Technology For

Module/Subject Name
Business

Lecturer/Tutor/Facilitator Ms. Dao Tran Hoang Chau

Due Date 08 September 2022

Assignment Title/Topic Final Assignment

University of Finance-
Intake (where applicable)
Marketing (UFM)

Word Count 1988 Words

Date/Time

Declaration

I. We have read and understood the Programme Handbook that explains on

plagiarism, and I/we testify that, unless otherwise acknowledged, the work
submitted herein is entirely my/our own.
II. We declare that no part of this assignment has been written for me/us by any other
person(s) except where such collaboration has been authorized by the lecturer
concerned.

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comparison software, for instances of plagiarism.
IV. We understand this will involve the University or its contractors copying my/our
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Signature: Date:

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Feedback/Comments*

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 Table of Contents
I. INTRODUCTION............................................................................................................ 5

II. HOW TIKI'S E-COMMERCE PLATFORM OPERATES AND THE IMPACT

ON USERS................................................................................................................................ 5

1. Why Tiki decided to change its platform to Marketplace........................................ 6

2. Market strategies that make Tiki able to adapt to current needs compared to
other strong competitors ..................................................................................................... 7

3. How does Tiki's e-commerce model benefit businesses and customers? ................ 9

III. CONCLUSION ................................................................................................................ 9

IV. REFERENCES............................................................................................................... 11

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 I. INTRODUCTION
Alongside the solid evolution of the internet network in the ongoing 4.0 innovation time, e-
commerce is progressively turning into a potential business structure that changes the
conventional showcasing and purchasing mentality. E-commerce has tackled a large number
of issues connected with commercial communication systems, for example, supply chain
development, goods management, human resource management, inventory network
improvement, and other related industries.

To find out about e-commerce as well as its role for businesses and consumers, I decided to
analyze Tiki - a large e-commerce site in Vietnam today. Established in March 2010, Tiki's
ancestor was basically a web-based book shop with ensured quality. In March 2012, Tiki was
contributed by CyberAgent Ventures Inc (Thao, 2021). Tiki has prospered an extensive
customer network, as well as restructured its warehouse and supply infrastructure with this
investment. Simultaneously, Tiki is especially concerned with changes in business paradigms,
as well as technology and the recruitment of high-quality employees.

More than 10 years of advancement, Tiki has been contributed by numerous financial backers
and has become one of the main 2 strong e-commerce stages in Vietnam and top 6 in Southeast
Asia. From that point forward, Tiki turned into the main multidisciplinary online retailer in
Vietnam with 26 divergent industries, of which books are as yet the principal identity of the
brand. Tiki's development also represented a significant shift in user behaviors, as customers
gradually shifted to online shopping due to time savings, quick payment, similar disparities in
product costs, and conveyance at home and whenever. (Khang, 2022)

II. HOW TIKI'S E-COMMERCE PLATFORM OPERATES AND THE IMPACT ON

USERS
Vietnam's e-commerce sector has been growing recently and is now a well-liked means of
conducting business. E-commerce has become a significant pillar of the digital economy thanks
to the use of contemporary technology, which is supported by Internet infrastructure and a
variety of operational models, objects, operating processes, and supply of products and services
(Thương Mại điện tử Việt Nam: Triển Vọng Phát Triển và chiến lược để 2022). Tiki has
typically had pretty successful business methods and has made a lot of progress thus far as a
retailer and distributor in the e-commerce space.

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 1. Why Tiki decided to change its platform to Marketplace
The first model that Tiki employs in its e-commerce operation is business to customer (B2C).
Tiki participates in several selling responsibilities in this model; their online store is a crucial
aspect of their operation. With this concept, Tiki uses its e-commerce platform to distribute
goods to end consumers. Tiki is in charge of overseeing all client interactions, from purchase
fulfillment to post-sale customer service. When a consumer places an order, Tiki will decide
which central warehouse is nearest to them in order to ship and deliver their purchase as soon
as feasible (Ánh, 2022). When using the B2C model, Tiki consistently loses despite using
strategies to gain the top spot in the e-commerce market, such as offering discounts, investing
in infrastructure, and supporting a wide range of customers. As a result, despite the high volume
of sales, the amount of money spent on advertising is still insufficient to cover costs. Tiki,
though, is still incredibly powerful. (Hương, 2021).

In mid-2017, Tiki shifted to the marketplace format, which is essentially a comprehensive B2C
paired with C2C model, in order to compete directly with Lazada or Shopee platforms. This
implies that Tiki is progressively becoming into an e-commerce trading platform where major
companies may post their products directly to their online stores rather than directly distributing
goods and handling every aspect of shipping and quality control (Khang, 2022). Marketplace
assists e-commerce businesses in successfully managing working cash and lowering
investment costs associated with storage. The supplier owns the items that are listed on
Marketplace, and they continue to be stored in the warehouse. The new business contacts the
supplier to handle the packaging, delivery, and collection phases on the provider's behalf when
the client places an order. To be able to closely regulate the products and quality for customers,
Tiki only works with vendors and companies who have complete business licenses.
As a result, rather than Tiki only offering books in the past, there are now a fast growing range
of products available. Tiki has expanded its product range into dozens of new categories,
including electronics, fashion, consumer goods, and more, from its original beginning point of
being an online retailer that only sold English books. The number of products available on Tiki
has so far topped approximately 300,000 from 2,500 companies. Additionally, buyers of other
things on Tiki may be potential buyers who are attracted by vendors. This approach assists Tiki
in effectively managing working capital, labor expenses, and purchasing investment costs
(Phúc, 2017). In 2018, the quantity of items on Tiki expanded in excess of multiple times from
almost 200 thousand items to more than 1,000,000 items, with over 90% of individuals selling
items (Khang, 2022).

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85% of consumers are happy with Tiki's quality and customer service, which is a positive
indicator of trust. Only 0.95% of Tiki's 400,000 monthly sales are returned. DealToday's
analysis of payment methods in Vietnam shows that 23% of customers pay using a card and
77% choose for pay-at-delivery (COD). In the meanwhile, 34% of Tiki's payments are made
with cards, and 66% are made via COD, said Tiki representatives (Ánh, 2022). Furthermore,
Tiki experiences challenges while embracing the commercial center model as far as the
standard of item input, beginning control, and acquiring the trust of clients.
Tiki also has a policy that supports returns if buyers get items that are not as advertised, are
damaged, or are faulty. Tiki has a highly stringent return and warranty policy since they care
about safeguarding their consumers. Tiki believes that the national average delivery time is 1.6
days because to the nation's huge distribution network. Customers may obtain things in Ho Chi
Minh City and Ha Noi in just two hours, but the quality of the goods is still assured (Vĩnh,
2021). Tiki continually adapts to meet the demands and trends of its clients so as to foster
positive interactions with them.
2. Market strategies that make Tiki able to adapt to current needs compared to other
strong competitors
Tiki's ambition is to become the best e-commerce platform in Vietnam, for Vietnamese people.
Tiki sets e-commerce market strategies through identifying and orienting the scope of
applications in the short and long term to adapt and meet market trends in Vietnam.
- Strategies to inflate user’s experience.
Vietnam's consumer shopping habits have now changed with the convenience of online
shopping. To explain that online shopping helps consumers save time, pay conveniently, easily
compare prices, get delivery, and can buy at any time of the day. Tiki has used technology to
deliver multi-device solutions to increase the effectiveness of switching between PCs and
mobile phones after seeing that potential. This site helps customers save a lot of time in finding
the items they are looking for.
This benefit, combined with the undeniably youthful populace, further developed pay levels,
and the rising entrance of the Internet as well as cell phones, has made online retail in Vietnam
accomplish noteworthy development, improving the buyer experience (Hạnh, 2022).
- PR - Affirm the brand and dominate with sales lockdowns

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Tiki has continuously conducted special promotions and communications to raise awareness
of diversity, especially for technological items and home appliances. Tiki is diversifying its
product line to directly compete with large competitors like Lazada, Shopee, or other
companies. But given that the majority of conversations about Tiki still revolve around books,
this campaign hasn't actually had much of an impact. For Tiki to pursue its communication
objectives, a lengthy procedure filled with several actions is necessary.

Figure 1:The most interactive sources of information about Tiki are related to books.

- Influencer marketing

Tiki has been aggressively utilizing influence marketing recently. It's possible that this is the
case because, after changing its economic strategy, Tiki must now focus on a bigger, more
generalized consumer base. Tiki's media and advertising efforts using well-known celebrities
and music videos are executed successfully and skillfully, "covering" the brand to the correct
target audience without offending or upsetting consumers. The project "Tiki with Vietnamese
stars" is one of the unusual undertakings that cannot be disregarded. The proper individuals
were reached by Tiki's media and advertising activities, which also avoided any unfavorable
responses. This has aided Tiki in seeing increases in app install rates of 17 times, post-campaign
sales of 3.3 times, and product purchase volume of 2.7 times. (Thao, 2021)
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 3. How does Tiki's e-commerce model benefit businesses and customers?
To make online purchasing quick, straightforward, and efficient, Tiki e-commerce utilizes an
idea that connects enterprises, retail sellers, and customers. Tiki has put in place unique
assistance programs to enable new sellers to enjoy a cost-free sales experience and deal with
operational concerns at the time of booth establishment to assist sellers in doing sustainable
business on Tiki. Up to 50% off for the next three months, free storage for three months
utilizing Tiki's storage concept, and no commission costs for sellers in the fashion sector
through March 2022. (Tiki đột phá bằng chiến lược ứng dụng công Nghệ Hiệu quả: Báo Công
thương 2021)
E-Commerce gives customers more options for selecting products, services, and providers.
Customers may pick from hundreds or even thousands of service providers and goods at
anytime, anyplace, and are not restricted by location or time. Tiki saw the customers' urgent
demand right away and responded by introducing a very rigorous regulation for the use of e-
commerce platforms. In particular, sellers who sell things through Tiki are required to offer
complete and correct legal information, pledge to sell only genuine goods and refrain from
selling counterfeit or goods of unknown origin and pay damages to buyers who may
demonstrate that the vendor was at fault. (Tiki đột phá bằng chiến lược ứng dụng công Nghệ
Hiệu quả: Báo Công thương 2021)
Additionally, Tiki incorporates insurance on the Floor as a result of thorough, 10-year
cooperation with AIA. In order to save clients time, effort, and paperwork, Tiki and AIA
Vietnam will work together to develop an insurtech platform with a choice of alternatives for
insurance products and useful financial support services. Customers will be able to purchase
AIA Vietnam health insurance directly through Tiki by the end of 12/2021. They will also soon
be able to use the platform's insurance case management function and submit claims. This is
not just a direction-finding endeavor, but also a result of research and education when using
technological solutions to support the functioning of Tiki's e-commerce system. (Tiki đột phá
bằng chiến lược ứng dụng công Nghệ Hiệu quả: Báo Công thương 2021)

III. CONCLUSION
The Ministry of Industry and Trade reports that e-commerce platforms in Vietnam have
recently continued to record powerfully built growth in both the rate of people involving the
internet as well as the quantity of buyers shopping on the web and the value of their purchases,
comprising the contribution of Tiki e-commerce platform (Tiki đột phá bằng chiến lược ứng
dụng công Nghệ Hiệu quả: Báo Công thương 2021). With the tagline "All for customers" and

9
innovative technological applications to assist items to reach consumers promptly - Quality -
Safety, Tiki has made its name known to consumers at the exact same time as the creation of
the most powerful e-commerce platform. With the slogan "All for customers," Tiki works
eagerly to raise the type of its contributions, giving Vietnamese customers a delightful
shopping experience. Tiki has been a consumer companion for over a decade, and many people
currently trust it when they purchase online. Despite facing intense competition from Shopee,
Lazada, and Sendo in the competitive e-commerce market, Tiki is constantly endeavoring,
making differences in a diversity of marketing strategies, and transitioning from a B2C model
to a marketplace to establish itself as a reputable online trading platform and protect the
interests of both buyers and sellers. Tiki has grown to be one of the top e-commerce ecosystems
in Vietnam and is increasingly integrating into the global market because of the pragmatic and
urgent approach to introducing new technological applications into e-commerce. Tiki still
needs to put forth more effort, though, to gain a competitive edge and control the Vietnamese
online retail market due to the gradual change in the psychological and consumer
characteristics of the Vietnamese population over time, as well as the influence of the social
environment.

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IV. REFERENCES

Hương, M. (2021, April 23). Lợi Thế Khi tiki chuyển MÔ Hình Kinh doanh TỪ B2C sang
marketplace. Blogger về chiến lược, chiến thuật trong kinh doanh, marketing,.. Retrieved
September 6, 2022, from https://maihuongreview.com/loi-khi-tiki-chuyen-mo-hinh-
kinh-doanh-tu-b2c-sang-marketplace/

Hạnh, L. (2022, February 23). Chiến Lược Marketing Của Tiki? Vị Thế Của tiki trong Ngành
TMĐT. MarketingAI. Retrieved September 5, 2022, from https://marketingai.vn/chien-
luoc-marketing-cua-tiki/

Khang, L. (2022, August 25). Thương Mại điện TỬ tiki: Xây Dựng Nền Tảng website
eCommerce. Magenest. Retrieved September 5, 2022, from
https://magenest.com/vi/thuong-mai-dien-tu-tiki/

Phúc, H. (2017, March 14). Startup tiki CÓ Quá Tham Vọng Khi Chuyển MÔ Hình Kinh
Doanh? baodautu. Retrieved September 6, 2022, from https://baodautu.vn/startup-tiki-
co-qua-tham-vong-khi-chuyen-mo-hinh-kinh-doanh-d60147.html

Thao, T. (2021, December 13). Tiki và Hành Trình xây dựng Thương Hiệu độc đáo – ông
hoàng ngành ecommerce Việt Nam. Unniemate. Retrieved September 5, 2022, from
https://unniemate.com/tiki-va-hanh-trinh-xay-dung-thuong-hieu-doc-dao-ong-hoang-
nganh-ecommerce-viet-nam/

Thương Mại điện tử Việt Nam: Triển Vọng Phát Triển và chiến lược để. Thương mại điện tử
Việt Nam: Triển vọng phát triển và chiến lược để "lên sàn" thành công - Chi tiết tin tức
- Sở Thông tin & truyền thông. (2022, March 25). Retrieved September 5, 2022, from
https://stttt.bacgiang.gov.vn/chi-tiet-tin-tuc/-
/asset_publisher/RcQOwn9w7wOJ/content/thuong-mai-ien-tu-viet-nam-trien-vong-
phat-trien-va-chien-luoc-e-len-san-thanh-cong

Tiki đột phá bằng chiến lược ứng dụng công Nghệ Hiệu quả: Báo Công thương. Báo Công
Thương điện tử, kinh tế, chính trị, xã hội. (2021, December 3). Retrieved September 6,
2022, from https://congthuong.vn/tiki-dot-pha-bang-chien-luoc-ung-dung-cong-nghe-
hieu-qua-168573.html

Vĩnh, P. G. S. T. S. L. T. (2021, December 19). Tiki và những Nước Rút KỲ Diệu. Báo Kinh
tế đô thị. Retrieved September 7, 2022, from https://kinhtedothi.vn/tiki-va-nhung-nuoc-
rut-ky-dieu.html

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Ánh, T. T. (2022, March 19). Quản Trị Chuỗi Cung ứng Trong Thương Mại điện TỬ. Tạp chí
Công Thương. Retrieved September 6, 2022, from https://tapchicongthuong.vn/bai-
viet/quan-tri-chuoi-cung-ung-trong-thuong-mai-dien-tu-truong-hop-lua-chon-mo-hinh-
va-chien-luoc-hoan-tat-don-hang-87576.htm

Điểm Mạnh Của Sàn Thương Mại điện TỬ tiki. ShopeePlus. (2019, November 7). Retrieved
September 6, 2022, from https://shopeeplus.com/blogs/diem-manh-cua-san-thuong-mai-
dien-tu-
tiki.html#:~:text=V%E1%BB%9Bi%20m%E1%BA%A1ng%20l%C6%B0%E1%BB%
9Bi%20ph%C3%A2n%20ph%E1%BB%91i,khi%20%C4%91%E1%BA%BFn%20tay
%20ng%C6%B0%E1%BB%9Di%20d%C3%B9ng.

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